Industry Ministry chief: High-tech layoffs reach 4,000
The total cost of these layoffs could reach NIS 12 billion a year.
by Lilach Weissman
January 1, 2009
Globes
Ministry of Industry, Trade and Labor director general Gabriel
Maimon told the Knesset Economics Committee that 4,000
high-tech employees have lost their jobs since October, and
that the number could reach 15,000. He noted that each
high-tech employee supports 4-6 employees in business
services sectors. The total cost of these layoffs could reach
NIS 12 billion a year.
Economics Committee chairman MK Robert Ilatov (Yisrael
Beiteinu) said that the government's economic stimulus
package made not mention of the high-tech industry.
"Even though we get daily reports of more and more layoffs,
the plan does not present a sufficient increase in the Chief
Scientist's R&D budget, and there is no proposal for dealing
with the funding shortage facing companies."
Data presented to the Economics Committee showed that
Israel's high-tech industry grew six-fold over the past decade,
doubling GDP over this period. High-tech exports amount to
half of Israel's manufactured exports. High-tech industry
employs 70,000 people directly, such as engineers,
programmers, and R&D staff, and 300,000 people indirectly,
such as subcontractors, lawyers, accountants, catering and
cleaning staff.